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to a standstill. sales of new cars and home appliances plunged. in september, president gerald ford asked congress to join him in a battle against inflation. my first priority is to work with you to bring inflation under control. inflation is domestic enemy number one. schoumacher: the federal reserve was also committed to fighting inflation and, under the chairmanship of arthur burns, held to a policy of keeping money tight. robert c. holland served on the fed's policy-making board of governors. when the federal reserve wants to fight inflation, wh it does is provide funds -- basic funds we call reserves, funds to the banking system -- less fast than bank customers are asking for money and credit to finance the kind of spending they're trying to do in this inflationary period. that means banks have to hold back a bit in terms of the amount they lend, may have to sell some assets, sell some securities to adjust. that puts a little more restraint on borrowers, they don't get quite as much money. banks typically charge higher interest rates. those higher interest rates lead borrowers and investors o
to john ford. he had to go into the hospital and have cataract operations, and he told me that, "look, i don't know when i'm going to be functioning again. and, if i were you, as a young guy today, what i would try and do is to get into television." (arthur penn) it was so unknown as a medium, we were sort of inventing it as we went along. and that was both the thrill and the excitement and part of the danger of it, very considerable danger. (sidney lumet) try to imagine what the scale meant. a 17-inch piece of glass was a large television set. they were 12-inch glass pieces, what they used to call, "14 inches diagonally." the reduced dramatic material to that kind of size, as opposed to movies, which had a 40-foot image, it was absolutely a new form. (narrator) the early networks borrowed heavily from the new york theatre to create dramas, broadcast live across the nation. changing characters and stories from week to week, these fast-paced collaborations produced some of america's best-known writers, directors, and actors. (peter falk) live television did have the same tensio as the the
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